More Stories

Informist, Wednesday, Jul. 16, 2025

By Shakshi Jain

NEW DELHI – Indian Hotels Co. Ltd., which manages the Taj brand of hotels, is expected to post a healthy year-on-year consolidated top-line and bottom-line growth for the June quarter on the back of higher average room rates. Analysts expect higher room rates despite occupancy across hotels falling in May and June due to border tensions between India and Pakistan, as well as the Air India flight accident.

Indian Hotels is expected to post a consolidated net profit of INR 3.03 billion during the quarter, up nearly 22% on year, according to the average of estimates from 11 brokerages. The hospitality chain is expected to report revenue of INR 19.45 billion in the quarter ended June, up 25% on year. Sequentially, the company's consolidated bottom line is expected to decline 42%, while its top line is projected to fall almost 20%, according to the estimates.

For the March quarter, Indian Hotels reported a consolidated net profit of INR 5.22 billion, up 25% on year. The revenue for the quarter had grown 27% on year to INR 24.25 billion. Sequentially, the company's bottom line had declined 10.3%, and revenue had fallen 4.3% for the quarter.

The highest estimate for Indian Hotels' consolidated net profit for the June quarter was INR 3.38 billion by Anand Rathi Share and Stock Brokers Ltd. and the lowest estimate was INR 1.88 billion by JM Financial Institutional Securities Pvt. Ltd. The highest estimate for consolidated revenue for the quarter was INR 20.40 billion by Motilal Oswal Financial Services Ltd., while the lowest was INR 17.36 billion by IDBI Capital Market Services Ltd.

IDBI Capital expects the company's sales in the June quarter to have risen 12% year-on-year, driven by higher revenue per available room for hotels owned by the company and increased management fees. Around half of Indian Hotels' operational inventory is owned or leased, while the remaining is managed through contracts.

As of May 31, Indian Hotels had a portfolio of 388 hotels, including 139 in the pipeline, across more than 150 domestic and international locations. It operates properties under multiple brands, including Taj, Claridges Collection, SeleQtions, Tree of Life, Vivanta, Ginger, Taj Palaces, and Gateway. By 2030, the company aims to expand its portfolio to include more than 700 hotels.

Brokerages estimate that the company's average room rate rose anywhere between 7% and 14% on year in the June quarter. "We expect IHCL  to witness a moderate impact of demand slowdown in May and June, primarily in its key markets – Mumbai and Delhi. However, IHCL's diversified presence across geographies and segments should result in limited impact on overall RevPAR (revenue per available room)," Yes Securities said in a note. Brokerages were nearly unanimous in their view that occupancy at the company's properties remained flat at around 75% during the quarter, due to geopolitical tensions.

"The earnings growth is partly aided by the TajSATS consolidation, which also leads to a downward impact on the blended margins," Kotak Institutional Equities said in a report. According to Nuvama Institutional Equities, the consolidation of earnings from TajSATS Air Catering Ltd., the air and institutional catering subsidiary of Indian Hotels, is expected to add 14-15% to the company's top line. Contribution from TajSATS was not included in the company's June quarter earnings last year, as the consolidation took effect in the September quarter after Indian Hotels' stake in TajSATS rose above 50%.

Indian Hotels is expected to report earnings before interest, tax, depreciation, and amortisation of INR 5.60 billion for the June quarter, according to the average of estimates from nine brokerages. The EBITDA growth is expected to remain low due to the lower margin of TajSATS, Nuvama said. Yes Securities said operating margins are expected to be 110 basis points higher on year for the hospitality segment.

Indian Hotels will announce its June quarter earnings Thursday. Investors will keenly watch the management's commentary on the outlook for the domestic leisure segment, as well as the wedding season and the overall demand for the full financial year.

Wednesday, shares of the company closed at INR 751.20 on the National Stock Exchange, up almost 1% from the previous close. The stock is down over 6% from its closing price on May 5, when the company reported its results for the March quarter. It is also down 16% from its 52-week high of INR 894.9, reached on Dec. 30. 

Of the 15 research reports on the company available with Informist, nine have a 'buy' or equivalent rating on Indian Hotels, and three each have 'hold' and 'sell' recommendations. The average target price of the buy recommendations is INR 884. The average target price of the hold recommendation is INR 855, and that of the sell calls is INR 709. 

Following are the Apr-Jun earnings estimates for Indian Hotels based on reports from 11 brokerages in descending order by the estimate of net profit:

End

Edited by Saji George Titus

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.